Oriflame Sa C Case Study Solution and Analysis
Intro
Oriflame Sa C Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information provider and a big thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, Oriflame Sa C Case Study Solution has invested its 60 years journey smoothly, being a successful publishing house, however, the altering macro market patterns and forces bring particular obstacles to the publishing industry in general and CMP in particular. These aspects consist of;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the company could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Oriflame Sa C Case Study Solution has specific strengths that can be made use of to lower the threats, get rid of the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Oriflame Sa C Case Study Help in the publishing industry i.e. 60 years allows the company to supply high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and offer high worth to its customers.
• Strong financial position enables the company to think about several development opportunities without any worry of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weaknesses which could increase constraints for the company in implementing its development program. The weak points of Oriflame Sa C Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It ought to propose certain growth plans to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing market is declining because 2008, affecting Oriflame Sa C Case Study Help as well, however the development could be restored by availing specific opportunities provided in the market. The marketplace opportunities for CMP include;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing industry has actually postured particular threats to Oriflame Sa C Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to decreasing market share of Oriflame Sa C Case Study Help due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing specific methods like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing companies in the industry in addition to presence of high competitors increases the threat of losing the consumer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP might not be determined. It might be examined from the Appendix III that the yearly overall revenues of Oriflame Sa C Case Study Help during the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the products of CMP is growing and the company is quite efficient in bring in a big number of clients at a possible price.
Along with it, the 2nd chart which reveals the annual growth in the Oriflame Sa C Case Study Help total properties, reveals that the business is rather effective in including worth to its properties through its incomes. The growth in assets reveals that the overall worth of the company is also increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the business using the given information might be the analysis relating to the distribution of overall profits of the company. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business sections with a prospective development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the numerous external forces impacting the efficiency of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the total political forces affecting Oriflame Sa C Case Study Solution business are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading methods etc. Improvement of science and technology along with the increase of digital publishing might decrease the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Oriflame Sa C Case Study Solution includes the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing should not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be used to examine the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to bring in new entrants to the publishing market. The existence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement products for the published documents is the files provided in the digital libraries on particular websites. The changing consumer preferences towards digital learning increase the threat of substitution for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Oriflame Sa C Case Study Analysis include the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Oriflame Sa C Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is also one of the popular gamers in the publishing market with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the choices are moving towards digital publishing and the company require an immediate option to avoid the declining market growth. Intro of digital publishing could prove to be an immediate option with low quantity of risk for the business. The business might also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company should initially gathers the information related to the consumer need, the potential markets, the federal government guidelines and the information related to the rivals presented in the market. If the preliminary offering shows a success, the company must go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining considering that 2008, revealing a threat to the company's long term existence, but the scenario can be managed by considering a development strategy in the future. The business could think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.
